International markets are an important contributor to U.S. economic activity. U.S. regions have varying exposure to the influences of international markets--foreign demand or exchange rate movements. Still, the overriding determinants of regional economic growth is the state of the domestic economy.

Midwest manufacturing has experienced a resurgence in its competitiveness in export markets during the last decade. There is a widely held view that this increased competitiveness is importantly attributable to the depreciation in the foreign exchange value of the dollar. This article questions...